State Finance to be Overburdened

The plan to allocate Rp 1.75 quadrillion to buy the primary weaponry System needs to be reconsidered. During the COVID-19 pandemic, the management of state finances must be prioritized to restore people\'s lives.

Kompas/Hendra A Setyawan

Defense Minister Prabowo Subianto (center) before attending a hearing with Commission I of the DPR at the Parliament Complex, Senayan, Jakarta, Wednesday (2/6/2021). The closed-door meeting discussed the budget, the defense equipment to be purchased, as well as the national defense system.

JAKARTA, KOMPAS — The plan to allocate Rp 1.75 quadrillion (US$122.22 billion) to buy the primary weaponry system (Alutsista) from foreign loans is considered to be burdensome for state finances. The government still needs to prioritize the budget to recover from the impact of the COVID-19 pandemic.

A draft presidential regulation (Perpres) related to the fulfillment of defense and security equipment needs of the Defense Ministry and the Indonesian Military (TNI) for 2020-2024, which is still being worked out, mentions the need for a budget for the procurement of defense and security equipment until 2044. Its value reaches $124.995 billion.